“Sixty percent [of USAID funds] goes to firms operating inside the beltway, disappearing in a black box,” Jake Johnson of the Centre for Economic and Policy Research, a Washington think tank, told IPS. “That makes it very hard to determine how and when the funds reach the ground.”
Even though the United States offered $3 billion in aid for Haiti after the earthquake, less than one percent of the $1.3 billion in obligated USAID funds—money designated specifically for Haitian recovery efforts—has gone directly to local Haitian groups.
“When so little of the funding reaches Haitians themselves, it takes them out of the decision-making process and ensures that aid programs are not actually responsive to the needs of people on the ground,” Mr. Johnson says. via Final Call